UK firm acquires stakes in Oman's Block 9 and Blocks 3 & 4 for $148mn

11/12/2025 04:23 AST

London-based Kistos Holdings, an independent, integrated energy company with upstream and midstream operations across international markets, has signed a binding agreement to acquire a 5% working interest in Block 9 and a 20% working interest in Blocks 3 & 4 from Mitsui E&P Middle East, both onshore in Oman.

The UK firm has agreed to pay $148mn for the interests, with an effective date of January 1, 2025. The consideration is subject to customary closing adjustments, payable on completion, and will be funded from Kistos' existing cash resources, according to a statement on the company's website.

The acquisition is expected to add 25.6 mmboe (million barrels of oil equivalent) of 2P reserves net to Kistos as at January 1, 2025. Estimated production for 2025 is around 9,000-10,000 boepd (barrels of oil equivalent per day) net to Kistos, comprising approximately 91% liquids and the remainder gas.

Kistos said its entry into the Middle East provides both geographical and onshore production diversification to its existing portfolio. Representing an evolution in the company's M&A strategy, the acquisition aligns with the board's core ambition of pursuing assets that offer strong near-term production with significant development and exploration upside.

Block 9, operated by Occidental Petroleum (Oxy), covers two producing areas. Blocks 3 & 4, operated by CCED, include seven producing fields and cover roughly 29,000 sqkm in eastern Oman. Both Block 9 and Blocks 3 & 4 are governed by the sultanate's Exploration and Production Sharing Agreements (EPSA).

Kistos noted that completion of the acquisition is subject to customary governmental and regulatory approvals, as well as partner consents. Further announcements will be made in due course upon completion, including details on the mechanics of completion and the financial impact of the transaction.

Andrew Austin, Executive Chairman of Kistos, said, "This acquisition marks a significant milestone for Kistos as we expand our footprint into a new and strategically important region, acquiring interests that align with our strategy of securing high-quality, value-accretive assets, both in the near and long term.

"Our entry into the MENA region represents an important step forward in our mission to build a resilient, future-facing energy company. It not only complements our existing portfolio in the North Sea but also provides a platform for long-term growth and enhanced cash flow."

Effective January 1, 2025, the acquisition will increase Kistos' reserves to 50 mmboe and is expected to lift production materially in 2026 to around 20,000 boepd, Austin added.

"While we continue to consider further acquisitions in the North Sea, we view this foundational step into the MENA region as a way to diversify our portfolio, broadening the opportunities we explore and potentially unlocking future synergies through further expansion in the region," he said.

Muscat Daily